- Bellway reports lower home sales between August and May as Coronavirus weighs on demand.
- The Newcastle-based company resumes construction activity at around 250 of its sites.
- The property developer's order book stands at £1.57 billion with net bank debt of £157 million.
Bellway plc (LON: BWY) said on Tuesday that sales remained under pressure in the period of August to May. The British housebuilder announced to have sold roughly one thousand fewer homes in the nine months as the Coronavirus pandemic disrupted businesses activity and weighed on demand.
COVID-19 has so far infected a little under 300,000 people in the United Kingdom and caused more than 40,500 deaths. As the British government resorted to a nationwide lockdown to minimise the fast spread of the novel flu-like virus, the UK’s housing market took an unparalleled hit in recent months.
Shares of the company are currently about 3% down on Tuesday. At £29 per share, Bellway is roughly 25% down year to date in the stock market after recovering from a low of £18.79 per share in March. Learn more about how to choose winning stocks.
Bellway resumes construction activity as the government eases restrictions
The residential property developer, however, also highlighted on Tuesday that around 230 of its countrywide sites have resumed construction activity. Bellway also hopes to finalise several houses in the upcoming weeks that were previously left near completion due to the health crisis.
The UK-based housebuilders are slowly returning to work as PM Johnson’s administration announced plans of easing COVID-19 restrictions in June after a countrywide lockdown that lasted strictly for nine weeks. Bellway’s larger competitor, Taylor Wimpey, said last week that demand for new homes was showing early signs of recovery.
According to Bellway, year over year sales are still expected to remain severely under pressure until the British government completely lifts the Coronavirus restrictions. The Newcastle-headquartered company builds family houses, apartments, and luxury penthouses in the United Kingdom.
Bellway’s net bank debt stands at £157 million
From August to May, Bellway announced to have sold 6,721 houses in total in the UK. The FTSE-250 listed company had sold a much higher 7,674 homes in the same period of the prior year. As of 31st May, Bellway’s order book stood at £1.57 billion with net bank debt of £157 million.
Bellway’s performance in the stock market was reported largely upbeat in 2019 with an annual gain of a little under 50%. At the time of writing, the UK-based residential property developer has a market cap of £3.59 billion and a price to earnings ratio of 6.87.